Chapter 902
If you can't beat them, join them
At the Shenzhen Convention and Exhibition Center, the festive atmosphere of Christmas and New Year has not yet completely faded, but the venue is already filled with a completely different kind of excitement, tinged with the smell of gunpowder.
The launch event for Century Langke's "Waterdrop" MP3 player was packed with people, and the flashing lights were even more intense than the festive lights.
Tech media, digital enthusiasts, channel distributors, and even some representatives from rival companies who have caught wind of this development have all fixed their attention on the center stage.
Wei Shu, the female president of Century Group and the interim president of Century Langke, wore a well-tailored dark blue suit and walked steadily into the spotlight.
A confident and composed smile graced her face as her gaze swept over the dark crowd below the stage. The aura she had cultivated alongside Lu Yang was now on full display.
"Distinguished guests, friends from the media, and partners who care about Century Langke and the future of music, good afternoon!" Wei Shu's voice clearly resonated throughout the venue through the microphone, carrying a commanding presence that instantly silenced the noise.
The huge LED screen behind her lit up, clearly displaying two MP3 players with a sleek and futuristic design.
Waterdrop MP3 Basic and Advanced Models.
With its smooth lines and exquisite metallic casing, it gleams with a cool and sophisticated luster under the light.
"Music is a universal language. The mission of Century Langke 'Waterdrop' MP3 is to allow music to be carried around and listened to freely."
Wei Shu's opening remarks were concise and powerful, quickly getting to the point.
She began to explain in detail the product's core advantages:
"First and foremost, it's a capacity revolution!" Her voice rose, filled with undeniable confidence. "While mainstream products on the market are still struggling with capacities of 16MB or 32MB, barely able to hold a dozen or so low-bitrate songs, the 'Waterdrop' basic model starts at 64MB! What does this mean? It means you can easily store 15 to 25 standard-quality songs! And our advanced model, with its massive 128MB capacity, can hold 30 to 45 songs! Let your music library truly go with you!"
A murmur of surprise and discussion immediately rose from the audience.
Starting at 64MB?
This is a game-changer in the current market!
Many digital enthusiasts' eyes have already lit up.
Wei Shu continued without pausing, "Secondly, there's the guarantee of sound quality! We've used a top-of-the-line decoding chip, combined with Century Langke's self-developed audio optimization algorithm, to ensure that every note, from bass to treble, is clear and full, restoring the essential charm of music. Say goodbye to noise and distortion, and enjoy a pure auditory experience!"
"Third, the ultimate experience! The ultra-long battery life, the lightweight body, the ergonomic streamlined design, and our meticulously crafted, extremely simple and easy-to-use user interface make enjoying music a pure pleasure, not a burden."
She highlighted the product's strengths one by one, each one precisely addressing the pain points of current MP3 products.
The atmosphere at the scene was gradually pushed to a climax.
Reporters' fingers flew across keyboards, tech bloggers snapped photos with their cameras and phones, and enthusiasts whispered amongst themselves, their faces filled with anticipation.
"Then," Wei Shu changed the subject, a meaningful smile appearing on his face, his gaze seemingly piercing through the crowd and landing on the representatives of the competing companies hidden in the corners, "what is the value of such an outstanding product? And how will its price be defined?"
The entire audience held their breath for a moment.
Everyone knows that while the performance presentations are impressive, what ultimately determines the market landscape is often that cold, hard number.
Wei Shu took a deep breath, as if gathering strength, and her voice became clearer and louder, each word striking a chord in the hearts of her listeners:
"Now, on behalf of Century Langke, I officially announce the suggested retail price of the 'Waterdrop' MP3 player!"
On the large screen, next to the exquisitely rendered images of the two products, the huge price figures dropped like a bombshell:
[Waterdrop MP3 (Basic Model) 64MB: ¥999!]
[Waterdrop MP3 (Advanced Version) 128MB: ¥1699!]
"boom--!!!"
After a brief, deathly silence, the entire press conference venue erupted in a frenzy, as if a depth charge had been dropped on it!
"How much?! 999?!"
"Am I seeing things? 64MB for 999?!"
"The basic model is only 999?! My God! Is this price insane?!"
"128MB for 1699... considering its capacity and design, this price is absolutely great value!"
"Impossible! Absolutely impossible! Even generic 64MB memory cards are selling for over 1500! Big brands are even selling 32MB cards for 2000! Did Century Langke misprice their devices?!"
"999...Are you sure this isn't 1999?!" a reporter in the front row exclaimed, his voice trembling, which elicited a collective gasp of agreement from the audience.
The reaction from the audience was far more intense than Wei Shu had anticipated.
Exclamations, doubts, and incredulous discussions swept through the entire venue like a tsunami.
The tech enthusiasts were flushed with excitement, patting each other on the shoulder as if they had found a steal; the distributors were initially stunned, then their eyes lit up with ecstatic joy—this price meant absolute potential for a blockbuster product! Meanwhile, the representatives of other companies mixed in with the crowd turned pale instantly, some even instinctively pulling out their phones, their fingers trembling as they tried to dial.
The press section went completely insane.
The sound of camera shutters clicking was continuous, and the flashes almost overwhelmed the stage.
Their keen professional instincts told them that this was not just the launch of a new product, but a price explosion that could disrupt the entire industry!
"Holy crap! President Lu is awesome! The beautiful CEO is awesome! 999! It really is 999!" A young fan stood up excitedly, waving his fist and shouting in a hoarse voice, which immediately drew a chorus of agreement.
"So affordable! So incredibly affordable! First there was Little Prodigy VCD, then Little Genius computer, and now Waterdrop MP3! Mr. Lu's companies are truly price killers! A boon for consumers!"
"Hahaha! Our competitors must be crying in the bathroom! At this price, are they even letting us survive?"
"They're going crazy! Century Langke is going to wipe out the MP3 market!"
"Absolutely! This time, our competitors are really going to be utterly crushed and rubbed in the toilet!"
The excited discussions were like cold water poured into a boiling oil pan, instantly escalating into a frenzy.
While reporters frantically documented the reactions at the scene, their minds were already racing, drafting headlines for their press releases:
[Century Broadcom drops a bombshell! 64MB "Waterdrop" MP3 player only 999 yuan!]
[MP3 Market Shakeup! Century Langke's "Waterdrop" Disrupts Industry Pricing!] [Price Killer Strikes Again! Century Group Companies Unleash a Bloodbath in the Digital Product Market!]
[64MB MP3 for 999 yuan? Competitors fall silent; winter has arrived!]
A veteran tech journalist muttered to his colleague, "Wow, this is going to be hilarious... This isn't a press conference, it's a challenge! Century Langke is about to flip the table!"
The colleague next to him nodded repeatedly, his eyes shining: "That's right! Christmas has just ended and the New Year's bells haven't even cooled down yet, and Century Langke has already delivered such a 'gift'. I bet that after New Year's Day, no, in these next few days, the price war surrounding MP3 players will absolutely be a bloodbath! The industry is going to be reshuffled!"
The enthusiastic atmosphere at the press conference spread at lightning speed through live webcasts, social media, and real-time reporting by journalists on site.
Almost at the same time the price was announced, this "thunderbolt" resounded in every corner of the internet, quickly topping the headlines of major technology forums and portal websites.
Meanwhile, in the living room of another luxury hotel suite in Shenzhen, a huge LCD TV was frozen on the moment Wei Shu announced the price. The number "999" on the screen was like a red-hot iron, burning the viewer's eyes.
"Clap!"
A cracking sound, even more ear-piercing than that from the study at Victoria Peak, rang out!
It wasn't a priceless Qing Dynasty imperial porcelain vase, but a brand-new TV remote control that was smashed hard and with all its might onto the expensive marble floor tiles!
Plastic fragments and batteries flew everywhere.
Duan Yongping's chest heaved violently, like a volcano about to erupt, yet he forced himself to calm down.
BBK also intends to enter the MP3 market and has already invested heavily in research and development. Originally, they came here with the mindset of learning, but given the current situation, if the company continues to try to squeeze in and get a share of the market, they have absolutely no chance of winning.
999 yuan, 64MB...
He quickly calculated the costs in his mind: flash memory chip, decoding chip, casing, circuit board, battery, labor... Even if Century Langke has its own flash memory technology, saving some costs, priced at 999 with this configuration, the profit margin is absolutely squeezed to the extreme, or even... very likely to be just above cost, or at a slight loss!
"Has he gone mad? Just to grab market share?" Shen Wei, his capable subordinate, frowned, sensing a kind of incomprehensible madness.
"unless."
Chen Mingyong, another of Duan Yongping's right-hand men, said: "Unless this is a 'suicidal' low price for the basic model, forcibly tearing open a market gap to attract massive attention and users, while using the advanced model to maintain the brand image and lock in some profits! The basic model is responsible for charging into battle and seizing market share; the advanced model is responsible for stabilizing the situation and providing ammunition. One low and one high complement each other!"
"What a brilliant plan! What a brilliant plan!"
Shen Wei gritted his teeth, but deep down he had to admit how ruthless and effective this move was.
He could almost foresee the panicked and bewildered expressions on the faces of MP3 manufacturers accustomed to high profits, such as Sony, Samsung, iRiver, and a host of domestic brands, when they saw this price.
Follow suit with a price cut? That would mean huge losses, especially for the 64MB capacity, which they haven't yet deployed on a large scale! Don't follow suit? Their market share will be swallowed up by Century Langke with overwhelming force!
With its cost advantage from its self-developed flash memory technology, Century Langke may still be able to barely survive on its basic models.
But what about other competitors? They don't have their own core components, so their procurement costs are high. If they follow the 999 price, they'll lose money on every unit sold! This is a blatant conspiracy! A cruel conspiracy launched using an absolute cost advantage to force competitors to either follow suit at a loss or watch their market share be taken away!
Century Langke is not "killing a thousand enemies while losing eight hundred of its own" at all. It is clearly relying on its cost advantage of being tough and durable, wielding a sharp knife with a blood groove (low-priced basic model), forcing its opponents to either bleed out and fight it at a loss, or get out of the battlefield! And it itself still has a sharp sword (high-priced advanced model) in its hand.
Duan Yongping took a deep breath, as if trying to force down the burning, suffocating feeling in his chest.
He slowly turned around, his gaze sweeping over his two capable lieutenants.
Shen Wei's face was filled with resentment and resistance, while Chen Mingyong was relatively calm, his eyes showing a pragmatic look after weighing the pros and cons.
“Alright,” Duan Yongping’s voice was deep and decisive, instantly silencing the almost stagnant air in the room. “Say less.”
He raised his hand to stop Shen Wei, who was about to argue, and looked sharply at the two of them. "Get ready, you'll be coming with me to meet this President Lu later."
This sentence is like a stone thrown into calm water, creating ripples.
Shen Wei suddenly looked up, his eyes filled with astonishment and confusion: "Boss?! We're really going to... beg him? Just because of his price-cutting tactics?"
His voice was clearly resistant, "BBK is the culmination of our hard work! Even if Lu Yang is only the second largest shareholder, it's still..."
"Just because he's the second-largest shareholder!" Duan Yongping interrupted him, his tone becoming more forceful, carrying a weary yet clear-headed understanding of the situation. "Moreover, he's the second-largest individual shareholder, far exceeding the other founders! This is the first day you've heard of this shareholding structure?"
He walked to the huge floor-to-ceiling window, his back to the two of them, looking at the bustling street scene of Shenzhen. His voice carried a hint of self-mockery and helplessness: "I wanted to break away from him and go it alone on this new MP3 project... Hmph, wasn't that what I was afraid of? I was afraid that his influence would continue to expand within BBK, afraid that his 'Century System' approach would completely dominate the company's direction, and then he would become too powerful to control, us founders would end up working for him!"
Duan Yongping whirled around, his eyes fixed intently on Shen Wei: "But now? Shen Wei, tell me, facing 'Waterdrop's' 64MB for 999 yuan, what will our planned MP3 player use to compete? What will we use? Nostalgia? Or will we use a price significantly higher than 999 yuan to 'educate' the market? Do you think consumers will buy it?!"
Shen Wei was speechless, his face flushed, and his lips trembled a few times, but he ultimately failed to utter a rebuttal.
Cost! Cost is an insurmountable obstacle.
Without the cost advantage of self-developed flash memory technology, BBK's move to follow suit would be suicidal, while not following suit would be a death sentence.
“Boss,” Chen Mingyong spoke up at the right moment, his voice steady, “I agree with your decision. If you can’t beat them, join them. There’s no shame in that. The business world is like a battlefield; those who know when to yield are the wise.”
He paused, his gaze sweeping over Shen Wei, "Besides, BBK has been labeled a 'century-old company' in the industry for quite some time now. From the earliest VCDs and educational machines to the later DVDs, haven't we benefited to some extent from President Lu's strategic planning and supply chain every time? Instead of making a fuss about splitting up now, hoping to completely break away in the new MP3 field, only to end up battered and bruised, it's better to..."
Chen Mingyong emphasized, his gaze sharpening: "Why not make the money in front of us first! The MP3 market is about to be completely ignited by Century Langke, and the pie will grow rapidly. As a member of their 'Century Group,' even if we only get a small share, it's better than being completely excluded and watching others reap the rewards! Cooperation will at least preserve our position in the growing market and allow us to leverage President Lu's resources to reduce costs. Fighting head-on? That will only lead to losing all our capital!"
"But..." Shen Wei still tried to struggle, his face still showing resentment, "What if..."
“There are no ‘what ifs’!” Duan Yongping interrupted him again, his tone resolute and authoritative. “Shen Wei, I know what you’re worried about. Are you worried that Lu Yang’s infiltration of BBK will be even deeper after the cooperation deepens? Are you worried that we will completely lose our autonomy? I’ve thought about all of these things! But now is not the time to consider these ‘what ifs’! Now is a matter of life and death! Only by surviving can we talk about the future! Talk about independence!”
He walked up to Shen Wei, patted him hard on the shoulder, the force was heavy: "There are some things we founders can discuss behind closed doors when we get back. Now, put aside your emotions and come with me to the appointment. Remember, we're not going to 'beg,' we're going to discuss cooperation and fight for BBK's rightful share of the upcoming MP3 wave! We can be humble, but we can't be spineless! Understand?"
Looking at the unwavering determination in Duan Yongping's eyes, and then at Chen Mingyong's calm and supportive gaze beside him, Shen Wei's surging resistance was ultimately suppressed by the harsh reality and reason.
He let out a heavy sigh, tinged with a hint of helplessness, and said in a muffled voice, "...Understood, boss."
Duan Yongping then withdrew his hand, straightened the collar of his suit jacket which had been wrinkled from his excitement, and his eyes became sharp and deep again, as if the emotional fluctuations from before had never happened.
“Let’s go,” he said, heading towards the door first. “Let’s go see Mr. Lu, the one who brought us this ‘New Year’s gift.’ Let’s see what his next move is.”
His voice already carried a hint of calm and calculation, as if he were preparing for negotiations. (End of Chapter)